Energy and environment in the context of urban development

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Energy and environment in the context of urban
development

• ABCDE Tokyo, may 2006

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3 Key messages

• The use of aid is legitimate dealing with energy
  issues, even in emerging countries
• Rethinking and redesigning the long term urban
  planning process in order to reduce future energy
  demand is essential
• Donors have to support new modalities of
  intervention, especially new financial
  instruments

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1. Aid legitimacy

• A. Understanding elements
• Paradox
• Industrialised countries are the most important
  energy consumers.
• But most of energy savings to be done today are
  concentrated in emerging countries
• The need for energy efficiency incentives
• Energy cost is the main incentive for energy
  efficiency
• What mechanisms to maintain energy efficiency
  efforts in a context of low energy prices ?

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1. Aid legitimacy

• B. Main challenges
• Energy resources exhaustion as a geopolitical
  concern
• The increase of the energy bill as an economic
  concern
• Climate global warming as an environmental
  concern
• Energy efficiency is therefore a major thematic
  of sustainable development which comes to be a
  global concern. This calls on developed countries
  to react.

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2. Implementation challenges
A. The context

• Main and more important energy consuming sectors
  are industries, buildings and transport in
  developing, the two latter closely related to
  urban development.

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2. Implementation challenges
B. What are the existing solutions ?

• Energy efficiency efforts in the three sectors
• Industrial sector efforts in this sector are
  the most easy to implement (easily quantified)
• Transportation sector efforts mainly concern
  the development of technology innovation in less
  energy consuming materials
• Building sector efforts can be made in two
  areas
• the development of legal and regulatory
  frameworks in relation with the construction of
  new buildings
• rehabilitation in a sustainable perspective

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2. Implementation challenges

• C. What is there to be done to help developing
  countries ?

Main impact measures
Industry - use of the Carbon Fund mechanisms (Clean Development Mechanism of Kyoto but what to be done afterwards ?)
Transport transfer of technology new approaches and methodologies in urban planning (e.g Tranus)
Buildings - no one best way institutional, operational and financial frameworks should be analyzed to find the best solutions
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Urban development and energy consumption
2. Implementation challenges
Densité (Hab/ha)
Density (cap/ha)
Source NEWMAN KENWORTHY
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2. Implementation challenges
What will be the urban development model for
developing countries ? The impacts in terms of
energy and environment will certainly not be the
same.
Source BERTAUD A.
Source  BERTAUD A.

• The extreme case showed by Atlanta and Barcelona

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3. The role of donors

• Review aid mechanisms conception and process of
  projects
• Implicate more developing countries in research
  programmes in order to find the most suitable
  solutions for them
• Promote projects that focus more on institutional
  aspects, good governance and capacity building
• Use various financial instruments sovereign and
  non-sovereign financing, investment funds,
  guarantees,
• Support private sector investments in energy
  efficiency projects, including through
  public-private partnership

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3. The role of donors

• B. Some examples from AFD experience
• In Asian emerging economies, China and Thailand,
  AFD was mandated to focus its action on promotion
  of energy efficiency and renewable energy.
• AFD is funding projects of alternative energy
  production aiming to provide electricity to urban
  population biogas, micro hydro and cogeneration
  in western part of China.
• AFD is developing a research program on financial
  mechanisms for energy efficiency in the building
  sector, with a likely collaboration with an Asian
  research centre.

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3. The role of donors

• C. Some examples from the French Global
  Environment Facility experience (FGEF)
• An energy efficiency programme for low cost
  housing projects in China
• A programme for the development of an integrated
  sustainable public transport system for Greater
  Hanoi
• project to carry out feasibility studies for an
  integrated public transport system

• phase 1 (1999-2004) 50 annual energy savings
  were achieved with less than 7 additional
  investment cost
• phase 2 (2004-2007) rehabilitation, rural
  housing, sustainable development at the district
  level

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References

• Giraud P-N., Lefevre B., Les défis énergétiques
  de la croissance urbaine au Sud. Le couple
  Transport Urbanisme au cœur des dynamiques
  urbaines, Paris CERNA, April 2006
• International energy agency
• 2006 Energy week World Bank
• Thomas Heller Standford University
• Sustainable cities Presentation by Canada
  Industry at CSD 14 New York May 2006